Question

Stores that sell products in bulk directly to consumers and typically require a membership.

A. Convenience stores
B. Discount stores
C. Warehouse clubs
D. Specialty stores

Answer 1

Warehouse clubs are stores that sell bulk products directly to consumers who have a membership, offering economies of scale and savings.

Step-by-step explanation:

The type of stores that sell products in bulk directly to consumers and typically require a membership are known as Warehouse clubs. Major grocery stores often divide their products into departments like dairy, meats, produce, bread, cereals, and more, each aisle containing a vast range of items. However, warehouse clubs operate on a larger scale, where products are sold in bulk quantities, offering value to members. An example of the economies of scale advantage can be seen in Amazon’s use of large, highly computerized warehouses that allow for lower average costs per sale. By leveraging economies of scale, companies can pass savings to customers, which is a major aspect of the warehouse club business model.